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Beerworkers Archive


Post date: 11/13/2013 - 19:41

Anheuser-Busch InBev Beer Volumes Decline

North America and Brazil Fall but China Remains a Bright Spot

Anheuser-Busch InBev annunced that beer volumes fell in all of its biggest markets except China and that it saw little prospect of a short-term recovery in Brazil, even though third-quarter profit grew.

The world's largest brewer by revenue said total beer volumes fell 1.3% in the three months ended Sept. 30, and that it will now focus on improving performance in 2014 after a disappointing quarter.

North America and Brazil Fall but China Remains a Bright Spot

Anheuser-Busch InBev annunced that beer volumes fell in all of its biggest markets except China and that it saw little prospect of a short-term recovery in Brazil, even though third-quarter profit grew.

The world's largest brewer by revenue said total beer volumes fell 1.3% in the three months ended Sept. 30, and that it will now focus on improving performance in 2014 after a disappointing quarter.

"We are not satisfied with our top-line performance in 2013," the company said.

Beer volumes in North America, which generates more than 40% of AB InBev's earnings before interest, taxes, depreciation and amortization, fell by 1.9% in the quarter, compared with growth of 1.3% in 2012.

North American demand for beer has suffered from a shift away from mainstream lager to wine and spirits. AB InBev has attempted to halt the slide by introducing higher-margin premium and craft beers.

After years of soaring growth in Brazil, AB InBev's second-biggest market, a tough consumer economy is denting progress. Third-quarter volumes in Brazil fell 5% compared with growth of 0.2% last year. The brewer said it now expects industry wide beer volumes to fall in Brazil during 2013, having previously said volumes could be flat.

Still, the maker of Budweiser and Stella Artois said third-quarter net profit rose to $2.21 billion, or $1.36 a share, from $1.84 billion, or $1.16 a share, a year earlier. Revenue increased 3% to $11.73 billion.

China, where AB InBev has a 13% share of the world's biggest beer market, was a bright spot. Volumes there increased 8.3%.

Earnings were improved by the integration of AB InBev's $20.1 billion acquisition of Mexican brewer Grupo Modelo SA B, owner of the Corona brand.